In recent years, the state has vigorously advocated “mass entrepreneurship and innovation”. Science and innovation enterprises have the characteristics of high technology and high growth, and are one of the most potential customer groups. The government attaches great importance to the development of small and micro science and innovation enterprises and gives effective policy support. Science and technology finance has become an important path for the high-quality and sustainable development of Inclusive Finance. The Bank of communications thoroughly implemented the guidelines and policies of the state to serve entrepreneurship and innovative small and micro enterprises, continuously improved the ability of scientific and technological financial services, formed “five special” mechanisms such as franchise institutions, professional cooperation, exclusive products, special policies and special risk control, and made solid progress in all businesses. By the end of the first quarter of 2019, the total credit granted by bocom to inclusive technology small and micro enterprises had exceeded 35 billion, of which the entrepreneurship guarantee loan had an average annual growth of 15% in recent three years.

Franchise organization

At the head office level, the Inclusive Finance Division of the head office has a technology finance promotion team to engage in technology finance product research and development, business promotion and policy support. At the branch level, key branches have designated special teams or personnel to be responsible for the promotion and implementation of the bank’s technology finance business. According to the “three specialties” requirements of “professional people, professional things and special assessment system”, branches in Beijing, Shanghai, Jiangsu Province, Guangdong Province, Hubei Province, Sichuan Province, Suzhou, Shenzhen and other cities have selected scientific and technological enterprises, scientific and technological talents, government policy support, mature park construction, complete industrial chain, rich scientific and technological financial resources 18 specialized institutions of science and technology finance such as various science and technology sub branches have been set up in the regions supporting the intermediary system.

Professional cooperation

Integrate various resources, strengthen cooperation with the government, parks, venture capital, guarantee, capital market and other parties, and form a unique service model for small and micro enterprises of science and innovation. Cooperation with the government: cooperate with ministries and commissions such as the Ministry of industry and information technology and the intellectual property office to build a general to general platform and promote high-level cooperation in science, technology and finance. Under the framework of general to general cooperation, we have promoted the connection between branches and local government departments to serve customers in batches. At present, more than 20 branches of the bank have established cooperative relations with local government departments. Cooperation with parks: through cooperation with various parks gathered by scientific and technological innovation enterprises and making full use of Park risk compensation and other support policies, we have served scientific and technological small and micro enterprises in batches. There are more than 50 science and Technology Parks cooperated by the bank and more than 800 medical technology enterprises in the parks, such as Zhongguancun in Beijing, Zhangjiang in Shanghai, Optics Valley in Wuhan, industrial parks in Suzhou, etc. Cooperation with guarantee: form a cooperation mechanism with national financing guarantee fund, provincial guarantee and re guarantee system, and provide credit guarantee loans for scientific and technological small and micro enterprises. Cooperation with the capital market: more than 20 well-known venture capital institutions have been involved in serving enterprises in the early stage of the transformation of scientific and technological achievements, integrated into the whole life cycle of enterprises, and achieved mutual benefit and win-win results; Cooperate with local equity trading markets and other platforms to expand the scope of science and technology finance.

Exclusive products

In view of the characteristics of “light assets, high development and creativity” of small and micro science and technology enterprises, BOCOM has customized exclusive products and service schemes in combination with various government support policies. For example, risk compensation loans, using the risk compensation policies of the government or the park, jointly provide risk sharing for the loans of scientific and technological small and micro enterprises. For example, the multi-party guarantees introduced by the government or the government provide about 80% of the risk sharing, and the banks bear about 20%. The “Caiyuan credit link” in Jiangxi and the “credit guarantee loan” in Suzhou all belong to this model. Intellectual property pledge loans are financed by the pledge of intellectual property rights such as patents and software copyrights of scientific and technological enterprises. In view of the prominent problems of traditional intellectual property pledge loans, BOCOM invited experts from the State Intellectual Property Office to the head office to cooperate and innovate a new mode of intellectual property pledge financing. In view of the disadvantages of traditional intellectual property pledge loans that are “difficult to evaluate and deal with”, Bank of communications innovated the intellectual property pledge financing business model in 2018. Select valuable patents and valuable enterprises through the self created patent evaluation index system (covering many indexes such as legal risk, experience market risk and technical risk of patents); Calculate the appropriate credit line based on the income brought by the patent to the borrowing enterprise in the future for the reference of credit approval; Enhance customers’ willingness to repay through patent pledge; Intellectual property pledge is combined to increase credit through mortgage and pledge, guarantee company guarantee and government risk sharing. This model has been successfully implemented in Beijing Branch and Suzhou Branch. The business model of cooperation with Beijing has driven more than 20 customers to successfully obtain loans, with a loan investment of more than 40 million yuan, which is now promoted to the whole bank. Credit performance guarantee insurance loans, cooperate with insurance companies to jointly identify, assess and analyze risks, and provide credit enhancement for scientific and technological small and micro enterprises. Branches in Shanghai, Suzhou, Jiangsu Province and Hubei Province all offer such businesses. Investment and loan linkage: for small and medium-sized enterprises with initial development potential and high growth, BOCOM has joined hands with venture capital companies and equity pledgers to launch the “creditor’s rights + equity” investment and loan linkage model, which is typical of the “share option”. Shanghai branch and Suzhou Branch have successful cases. They have agreed with loan customers through bocom international that BOCOM has the right to choose to buy shares in enterprises at the price agreed in the agreement within a certain period of time in the future, The fruitful achievements brought by the development of both banks and enterprises. Entrepreneurship guarantee loan: for urban and rural self-employed entrepreneurs, college graduates and labor-intensive small enterprises that meet the requirements of the industry, the bank cooperates with the government and entrepreneurship guarantee institutions to set up a guarantee fund funded by the government. The guarantee institutions provide loan guarantee and the bank provides loans. Such businesses are carried out by branches in Inner Mongolia and Hubei Province.

Special policy

Strengthen positive incentives for science and technology finance. Special scale, FTP subsidy, economic capital occupation and other resource support were implemented for the loans of science and technology-based small and micro enterprises. The bank arranged special action resources for key customer groups of small and micro enterprises. For qualified new science and technology-based small and micro enterprises, incentives were given according to higher standards. In 2018, 704 science and technology-based small and micro enterprises that reached the standard were rewarded, with a reward amount of 2.11 million yuan. Establish a differentiated performance appraisal mechanism for specialized institutions of science and technology finance. In the first year of establishment, specialized institutions mainly assess the number of customers, assess the growth of customers and loans in the second year, and gradually implement comprehensive performance appraisal from the third year to guide the grass-roots level to focus on customer growth and value creation. Small and micro service scheme competition has been held for three consecutive years, and the top ranked schemes are related to technology and finance.

Special risk control

Clarify the differentiated investment of science and Technology Finance

In recent years, the state has vigorously advocated “mass entrepreneurship and innovation”. Science and innovation enterprises have the characteristics of high technology and high growth, and are one of the most potential customer groups. The government attaches great importance to the development of small and micro science and innovation enterprises and gives effective policy support. Science and technology finance has become an important path for the high-quality and sustainable development of Inclusive Finance. The Bank of communications thoroughly implemented the guidelines and policies of the state to serve entrepreneurship and innovative small and micro enterprises, continuously improved the ability of scientific and technological financial services, formed “five special” mechanisms such as franchise institutions, professional cooperation, exclusive products, special policies and special risk control, and made solid progress in all businesses. By the end of the first quarter of 2019, the total credit granted by bocom to inclusive technology small and micro enterprises had exceeded 35 billion, of which the entrepreneurship guarantee loan had an average annual growth of 15% in recent three years.

Franchise organization

At the head office level, the Inclusive Finance Division of the head office has a technology finance promotion team to engage in technology finance product research and development, business promotion and policy support. At the branch level, key branches have designated special teams or personnel to be responsible for the promotion and implementation of the bank’s technology finance business. According to the “three specialties” requirements of “professional people, professional things and special assessment system”, branches in Beijing, Shanghai, Jiangsu Province, Guangdong Province, Hubei Province, Sichuan Province, Suzhou, Shenzhen and other cities have selected scientific and technological enterprises, scientific and technological talents, government policy support, mature park construction, complete industrial chain, rich scientific and technological financial resources 18 specialized institutions of science and technology finance such as various science and technology sub branches have been set up in the regions supporting the intermediary system.

Professional cooperation

Integrate various resources, strengthen cooperation with the government, parks, venture capital, guarantee, capital market and other parties, and form a unique service model for small and micro enterprises of science and innovation. Cooperation with the government: cooperate with ministries and commissions such as the Ministry of industry and information technology and the intellectual property office to build a general to general platform and promote high-level cooperation in science, technology and finance. Under the framework of general to general cooperation, we have promoted the connection between branches and local government departments to serve customers in batches. At present, more than 20 branches of the bank have established cooperative relations with local government departments. Cooperation with parks: through cooperation with various parks gathered by scientific and technological innovation enterprises and making full use of Park risk compensation and other support policies, we have served scientific and technological small and micro enterprises in batches. There are more than 50 science and Technology Parks cooperated by the bank and more than 800 medical technology enterprises in the parks, such as Zhongguancun in Beijing, Zhangjiang in Shanghai, Optics Valley in Wuhan, industrial parks in Suzhou, etc. Cooperation with guarantee: form a cooperation mechanism with national financing guarantee fund, provincial guarantee and re guarantee system, and provide credit guarantee loans for scientific and technological small and micro enterprises. Cooperation with the capital market: more than 20 well-known venture capital institutions have been involved in serving enterprises in the early stage of the transformation of scientific and technological achievements, integrated into the whole life cycle of enterprises, and achieved mutual benefit and win-win results; Cooperate with local equity trading markets and other platforms to expand the scope of science and technology finance.

Exclusive products

In view of the characteristics of “light assets, high development and creativity” of small and micro science and technology enterprises, BOCOM has customized exclusive products and service schemes in combination with various government support policies. For example, risk compensation loans, using the risk compensation policies of the government or the park, jointly provide risk sharing for the loans of scientific and technological small and micro enterprises. For example, the multi-party guarantees introduced by the government or the government provide about 80% of the risk sharing, and the banks bear about 20%. The “Caiyuan credit link” in Jiangxi and the “credit guarantee loan” in Suzhou all belong to this model. Intellectual property pledge loans are financed by the pledge of intellectual property rights such as patents and software copyrights of scientific and technological enterprises. In view of the prominent problems of traditional intellectual property pledge loans, BOCOM invited experts from the State Intellectual Property Office to the head office to cooperate and innovate a new mode of intellectual property pledge financing. In view of the disadvantages of traditional intellectual property pledge loans that are “difficult to evaluate and deal with”, Bank of communications innovated the intellectual property pledge financing business model in 2018. Select valuable patents and valuable enterprises through the self created patent evaluation index system (covering many indexes such as legal risk, experience market risk and technical risk of patents); Calculate the appropriate credit line based on the income brought by the patent to the borrowing enterprise in the future for the reference of credit approval; Enhance customers’ willingness to repay through patent pledge; Intellectual property pledge is combined to increase credit through mortgage and pledge, guarantee company guarantee and government risk sharing. This model has been successfully implemented in Beijing Branch and Suzhou Branch. The business model of cooperation with Beijing has driven more than 20 customers to successfully obtain loans, with a loan investment of more than 40 million yuan, which is now promoted to the whole bank. Credit performance guarantee insurance loans, cooperate with insurance companies to jointly identify, assess and analyze risks, and provide credit enhancement for scientific and technological small and micro enterprises. Branches in Shanghai, Suzhou, Jiangsu Province and Hubei Province all offer such businesses. Investment and loan linkage: for small and medium-sized enterprises with initial development potential and high growth, BOCOM has joined hands with venture capital companies and equity pledgers to launch the “creditor’s rights + equity” investment and loan linkage model, which is typical of the “share option”. Shanghai branch and Suzhou Branch have successful cases. They have agreed with loan customers through bocom international that BOCOM has the right to choose to buy shares in enterprises at the price agreed in the agreement within a certain period of time in the future, The fruitful achievements brought by the development of both banks and enterprises. Entrepreneurship guarantee loan: for urban and rural self-employed entrepreneurs, college graduates and labor-intensive small enterprises that meet the requirements of the industry, the bank cooperates with the government and entrepreneurship guarantee institutions to set up a guarantee fund funded by the government. The guarantee institutions provide loan guarantee and the bank provides loans. Such businesses are carried out by branches in Inner Mongolia and Hubei Province.

Special policy

Strengthen positive incentives for science and technology finance. Special scale, FTP subsidy, economic capital occupation and other resource support were implemented for the loans of science and technology-based small and micro enterprises. The bank arranged special action resources for key customer groups of small and micro enterprises. For qualified new science and technology-based small and micro enterprises, incentives were given according to higher standards. In 2018, 704 science and technology-based small and micro enterprises that reached the standard were rewarded, with a reward amount of 2.11 million yuan. Establish a differentiated performance appraisal mechanism for specialized institutions of science and technology finance. In the first year of establishment, specialized institutions mainly assess the number of customers, assess the growth of customers and loans in the second year, and gradually implement comprehensive performance appraisal from the third year to guide the grass-roots level to focus on customer growth and value creation. Small and micro service scheme competition has been held for three consecutive years, and the top ranked schemes are related to technology and finance.

Special risk control

Clarify the differentiated investment of science and Technology Finance